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Is Private Education Better? Evidence from Chile

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  • Andrea Tokman Ramos

Abstract

This paper uses Chile’s voucher system to provide new evidence on whether private schools are more efficient than publicly operated schools. It contributes to the world debate by analyzing a universal voucher system. It contributes to previous Chilean studies by reducing the selection bias and allowing heterogeneous treatment effects. The results suggest that public schools are neither uniformly worse nor better than private schools. Rather, public schools are relatively more effective for students from disadvantaged family backgrounds. Such a system of comparative advantage is consistent with the coexistence of public and private schools in most Chilean communes.

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  • Andrea Tokman Ramos, 2002. "Is Private Education Better? Evidence from Chile," Working Papers Central Bank of Chile 147, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:147
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    References listed on IDEAS

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    1. William N. Evans & Robert M. Schwab, 1995. "Finishing High School and Starting College: Do Catholic Schools Make a Difference?," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 941-974.
    2. Dee, Thomas S., 1998. "Competition and the quality of public schools," Economics of Education Review, Elsevier, vol. 17(4), pages 419-427, October.
    3. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
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    Cited by:

    1. repec:pri:cepsud:79hsieh is not listed on IDEAS
    2. Sylvester C.W. Eijffinger, 2003. "The federal design of a central bank in a monetary union: The case of the European system of central banks," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 8(4), pages 365-380.
    3. Priyanka Anand & Alejandra Mizala & Andrea Repetto, 2006. "Using School Scholarships to Estimate the Effect of Government Subsidized Private Education on Academic Achievement in Chile," Documentos de Trabajo 220, Centro de Economía Aplicada, Universidad de Chile.
    4. Ricardo Caballero G, 2002. "Coping With Chile’s External Vulnerability: A Financial Problem," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(1), pages 11-36, April.
    5. Bernardo Lara & Alejandra Mizala & Andrea Repetto, 2009. "The Effectiveness of Private Voucher Education: Evidence from Structural School Switches," Documentos de Trabajo 263, Centro de Economía Aplicada, Universidad de Chile.
    6. Alberto Chong & Florencio Lopez-de-Silanes, 2007. "Corporate Governance in Latin America," Research Department Publications 4494, Inter-American Development Bank, Research Department.
    7. Figlio, David & Hart, Cassandra M.D. & Metzger, Molly, 2010. "Who uses a means-tested scholarship, and what do they choose?," Economics of Education Review, Elsevier, vol. 29(2), pages 301-317, April.
    8. Solange Berstein, 2002. "Two-Part Tariff Competition With Switching Costs and Sales Agents," Working Papers Central Bank of Chile 162, Central Bank of Chile.
    9. Anand, Priyanka & Mizala, Alejandra & Repetto, Andrea, 2009. "Using school scholarships to estimate the effect of private education on the academic achievement of low-income students in Chile," Economics of Education Review, Elsevier, vol. 28(3), pages 370-381, June.
    10. Paredes, Ricardo D. & Drago, José Luis, 2011. "The quality gap in Chile's education system," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    11. Alejandra Mizala & Pilar Romaguera & Carolina Ostoic, 2004. "A Hierarchical Model for Studying Equity and Achievement in the Chilean School Choice System," Documentos de Trabajo 185, Centro de Economía Aplicada, Universidad de Chile.
    12. Wikstrom, Christina & Wikstrom, Magnus, 2005. "Grade inflation and school competition: an empirical analysis based on the Swedish upper secondary schools," Economics of Education Review, Elsevier, vol. 24(3), pages 309-322, June.

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